I am spreading my covid 401 distro over 3 years and not repaying, where do I list the 1st year of income, I took out 12k, so 4k per year needs to be claimed?

[owensry1]

one box has the full 12k in it, from my form I received from fidelity, is this still correct, or does it get changed to 4k?

[DanaB27]

Yes, if you were directly impacted by the pandemic then you have the option split the $12,000 distribution over 3 years (for $4,000 per year) and will not have to a 10% early withdrawal penalty.

You qualify if:

• You, your spouse, or your dependent are diagnosed with COVID-19
• You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19
• You’re unable to work due to child care closure or hour reduction because of Covid-19
• You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

No, your Form 1099-R is correct, please follow these steps to enter your 1099-R and trigger Form 8915-E to report the COVID distribution:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
4. Continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
6. Answer all follow up questions carefully.

 Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

[owensry1]

Yes, I understand the 10% penalty part. My specific question is do I change my total 401k distro from 12k in the box, to 4k, since I will be claiming 4k each year for the next 3 years, what box is this that needs updated?

[DanaB27]

No, your Form 1099-R is correct, enter it as shown on the form with $12,000. You will have to answer the follow-up questions to be able to split it. Please follow these steps to enter your 1099-R and trigger Form 8915-E to report the COVID distribution:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
4. Continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
6. Answer all follow up questions carefully.

If you have code 1B in box 7 then please follow these workaround steps from user dmertz as discussed in 1099R Coronavirus Exception Issue: 

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” and enter all 1099-R information, enter code "1" but do not enter code "B" in box 7
4. Continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
6. Answer all questions in regards to the COVID distribution to trigger that you qualify for the Qualified Disaster Retirement treatment.
7.  On the “Review your 1099-R info” screen click "edit" and add code "B" to the 1099-R Form entry.
8. When you continue the COVID questions are still accessible